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|   | Landlord: Landlord's Address:    Tenant:    Tenant's Address:      Guarantor:  Basic Rent: | Baltic Westborough, LLC c/o The Baltic Group, LLC2180 Mendon Road, Suite 11Cumberland, RI  02864 Viking Systems, Inc. 134 Flanders RoadWestborough, MA NA As per the following schedule: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| October 1, 2010 through September 30, 2011                   | $20,486.25 per month or $245,835 per year       |
|--------------------------------------------------------------|-------------------------------------------------|
| October 1, 2011 through September 30, 2013         | $20,856.67 per month or $250,388 per year       |
| October 1, 2013 through September 30, 2015    | $21,245.00 per month or $254,940 per year  |

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| 15.1   | TENANT'S OPTIONS.  (a) Provided that, at the time of such exercise, this Lease is still in full force and effect without an Event of Default by Tenant and Tenant occupies at least seventy-five percent (75%) of the Rentable Area of the Premises for its own business purposes, Tenant shall have the right and option (the "Third Extension Option") to extend the Term of this Lease for One (1) extended term of Five (5) years ("Third Extended Term"). The Third Extended Term shall commence on the day immediately succeeding the expiration date of the Extended Term, and shall end on the day immediately preceding the third anniversary of the first day of such Extended Term. Tenant shall exercise its Third Extension Option for the Third Extended Term by giving written notice to Landlord of its desire on or before March 31, 2015.  The giving of such notice by Tenant shall automatically extend the Term of this Lease and an instrument of renewal will be executed. In the event that Tenant fails to give such notice to Landlord this Lease shall automatically terminate at the end of the Second Extended Term, and Tenant shall have no further option to extend the Term of this Lease. The Third Extended Term shall be on all the terms and conditions of this Lease, except (i) during any Third Extended Term, the extension provisions of this Section to the extent already exercised shall not be effective, (ii) that the Basic Rent in effect for the Third Extended Term shall be based on 95% of then current lease rates for comparable buildings in the market but in no case, lower than the most current rent. |
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| WITNESS:                           | Baltic Westborough, LLC                                                                                                                                                                                                                                                                                                                                                         |
|-----------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                    |                                                                                                                                                                                                                                                                                                                                                                                 |
| _________________________________  | By:  /s/ Irene A. Schmitt                                                                                   |
|                                    | Irene A. Schmitt, Managing Partner                                                                                                                                                                                                                                                                                                                                                   |
|                                    | The Baltic Group, LLC                                                                                                                                                                                                                                                                                                                                                                |
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| WITNESS:                           | Viking Systems, Inc.                                                                                                                                                                                                                                                                                                                                                            |
|                                    |                                                                                                                                                                                                                                                                                                                                                                                 |
| _________________________________  | By:  /s/ Jed Kennedy                                                          |
|                                    | Jed Kennedy                                                                                                                                                                                                                                                                                                                                                                     |
|                                    | President and CEO                                                                                                                                                                                                                                                                                                                                                                    |

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